Non-Tariff Barriers – SADC Secretariat requested to intervene in Mozambique

0b8a0ce6140c04b4f629a97cb5e8d8f34e69d4a1The SADC, COMESA and EAC Tripartite alliance has been urged by various Zimbabwean, Zambian and Malawian exporters to salvage a potential crippling situation occurring at Mozambique borders. This follows the recent implementation of a new transit bond guarantee system which in conjunction with the Single Window system is allegedly causing significant delays, including loss of business and spiralling demurrage for transit goods emanating from these landlocked countries, en route for export from various Mozambique ports, Beira in particular.

Complaint no. NTB-000-578 in terms of ‘Lengthy and costly customs clearance procedures’ was lodged and can be viewed in full on the Tripartite’s NTB portal. Amongst the various problems sited, the complainants request the following of Mozambique –

  • Mozambique Ministry of Finance is requested to get customs to consider a parallel system to run with the electronic single window programme to clear the backlog in Beira port now and also consider providing release against Report orders to reduce further downtime in port . This will be a stop-gap measure until the customs staff are well versed , fully trained and that the new system can work well.
  • Mozambique authorities to facilitate arrangements with Cornelder to consider waiving storage for this special situation or at least offer 75% credit on the bills due which I must say are now astronomical based on the days the cargo has stayed in port both imports and exports.
  • Mozambique authorities to facilitate arrangements with shipping lines to consider waiving completely the demurrage due on the empty containers or at least give say 15-21 more days grace period before demurrage starts accruing.
  • Mozambique authorities to facilitate arrangements that Mozambique customs get technical assistance to assist roll this new programme out without causing huge catastrophes like this.

Mozambique has acknowledged the complaint and expressed regret over the developments. Mozambique reported that the issue was receiving urgent attention and they would provide feed back shortly.

Ugandan importers to boycott Mombasa

Ugandan importers say they intend avoiding using the Port of Mombasa in Kenya in favour of Tanzania’ Dar es Salaam in future, because of unresolved issues with the Kenyan taxman.

Some 600 containers destined for Uganda are being held at the Kenyan port following the introduction of a cash bond tax. The chairman of the Kampala Traders Association announced last week that the association had resolved to suspend using Mombasa in the interim, reports New Vision (Kampala).

In addition, importers say they will take legal action against the Kenya Revenue Authority (KRA) which has issued a directive instructing importers to lodge either a cash bond equivalent to the value of the imported goods or a bank guarantee to the same value. This must be deposited before the goods being imported can be cleared.

The directive has affected not only the 600 containers waiting at the port but imports of motor vehicles and sugar.

Uganda’s trade minister, Amelia Kyambadde said she had been informed by the Uganda business community that the KRA, under notice CUS/L&A/LEG/1 had made a unilateral decision on a requirement for a cash bond or bank guarantee on transit sugar and motor vehicles above 2000cc.

Ugandan authorities say the action by the KRA directive constitutes another non-tariff barrier imposed by Kenyan authorities on its transit cargo and contravenes East African Community Customs Union protocol and decisions reached by the Council of Ministers in March 2012 on removal of non-trade barriers in the community.

“If Kenya needs an instrument to regulate regional trade in sugar and other products, a cash bond is not the instrument to apply,” said Kyambadde. Sources: Ports.co.za / New Vision (Uganda).